You only really need a DTD or Schema if you (or anyone you will be distributing your XML files to) need to validate against one. If there are only a small number of parties involved, everyone can agree on a common format (or agree to follow your common format), and you can be sure that every script or program will produce correct output there isn't really a need for a formal DTD or Schema.

If some of those conditions aren't met, you will need a DTD or Schema. In order to decide which is appropriate, first decide "Will a DTD do the job?". If the answer to that question is no, only then should you use a Schema.

My latest XML project was part of a messaging system for a distribution chain. My (server) script had to talk to their (client) script and that was all so we decided that developing a DTD was unnecessary.

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